Binance Turkey was found to have broken the Law on the Prevention of Laundering Proceeds of Crime, generally known as the AML Law, by MASAK.
Binance Turkey was fined 8 million lira (almost $750,000) by the Financial Crimes Investigation Board (MASAK) after failing the financial watchdog’s audit for monitoring Anti-Money Laundering (AML) compliance.
The Financial Crimes Investigation Board (MASAK), Turkey’s financial intelligence branch under the Ministry of Finance and Treasury, found Binance’s Turkey operations in violation of rules designed to prohibit the laundering of money obtained through illegal methods. MASAK audited Law No. 5549 on Prevention of Laundering Proceeds of Crime, generally known as the AML Law, according to local news agency Anadolu Agency.
The Turkish Anti-Money Laundering Law requires companies to identify and verify the personal identification information of customers on the platform, which includes information such as surname, date of birth, T.C. identification number (the Turkish equivalent of a social security number), and type and number of identity documents.
Businesses must also report the authorities of questionable activity within a 10-day period, according to the regulation.
The watchdog, according to Cointelegraph Turkey, levied the maximum administrative fine of 8 million Turkish lira for the alleged breach. This timetable also coincides with President Erdoan’s announcement of the completion of a crypto law draught, which will be sent to Parliament for approval soon.
Binance is now the first cryptocurrency company to be penalised by the Turkish government. According to former Treasury and Cost Minister Lutfi Elvan, MASAK works closely with the Financial Action Task Force (FATF), a global regulator against money laundering and terrorism financing:
“FATF has asked for measures to be taken against crypto trading platforms.”
In response to this request, MASAK has committed to record transactions worth more than 10,000 lira within 10 days.
Recep Tayyip Erdoan, Turkey’s president, acknowledged the completion of a crypto law, which will be handed over to Parliament for general adoption soon.
According to Cointelegraph, the crypto law proposes a new economic model that can aid Turkey’s efforts to restore the lira’s deteriorating value. Erdoan also stated that the current inflation in the Turkish currency is not due to mathematics, but rather to a process, meaning that the lira’s value development is possible and possible:
“With this understanding, we intend to channel it to a dry spot. But the exchange rate will find its own price on the market.”
